The modern business world has some of the ethical factors that need to be considered while taking the decisions of the business (Eilifsen et al. 2013). The relevant outcomes of the decision of the business will have a severe impact on the different stakeholders. There is a scope for several ethical decision making models. One of the most prominent models is that which the American Accounting Association introduces. This AAA is an organization that is considered an excellent support in the Accounting educational, practice and research system worldwide. A voluntary organizational system that comprises of the different accounting experts is required to work towards the growth of the accounting research and education (Hayes, Wallage and Gortemaker 2014). The ethical decision making model of the AAA has been initially written by Rockness and Langerder in 1990 that consists of the logical step processes in order to make an ethical decision making system. The ethics in the code is considered to play a decision making model. The CPA and the CAANZ in Australia has a specific code of ethics that acts as a public interest (DeFond and Zhang 2014). The ethical code consists of the five different elements that require an auditor that needs to be complied to. These are:
- Professional Behavior
- Professional competence and due care
There is a need to determine the facts that is the first step of the AAA. From the beginning of the process, there is a need for the various essentials that requires gathering of the different information, which has no ambiguity of any other issues that can be considered under it. It is evident in case of the Morgan fertilizers that the Jacqui is one of the senior auditors of the team that requires the notifications from the Morgan fertilizers that has changed its contractors to the Dumparound Ltd for the waste management purposes. The allegation of the Dumparound has a comparatively high level of the toxic waste at one of its major site that requires investigation by the local council.
The second step involves the identification and the scrutinizing the various facts that is related to the ethical issues. The issues regarding the ethical consideration is that the fertilizers in the Morgan organization has developed a change that is beneficial to the contractors of the Dumparound Ltd in the various purposes related to the waste management. The Dumparound Ltd is all about the different investigations that are required by the local council for the inappropriate dumping of the toxic waste. The Dumparound Ltd is considered to be disposing at a high level of the different toxic wastes in the environment that requires consideration as a typical ethical issue (Wang, Li and Li 2015).
Identification of the major principles, values and the rules
The code of the professionalism ethics requires a comparative step that will be helpful. The principle is comprised of the various objectives that require the statement of the different members that are not supposed to be comprised in the business and the professional judgement area as it is bias of the various areas of the interests conflict and also to un due some of the influences by others (Simunic, Ye and Zhang 2017). There is a requirement to make a member terminate the several duties that can be found in the circumstances that comprises of the biasesness or the unduly influences of the different professional decision of the members. In addition to these factors, the various principles of the integrity helps in the implication that all the members are considered to be straightforward and honest in almost all the business relationships. There is a requirement for the integrity to also include in the various fair dealings as well as the truthfulness.
There is a need for all the two alternatives so that these things that needs to be taken into consideration. The first one is to make a continuation of the audit system in the various financial statements so that it cannot be concerned in to the contracts between the Morgan fertilizers and the Dumparound Ltd. The second and the last option is to make the audit into the financial statements that can be well informed about the different Morgan fertilizers that is also about the Dumparound Ltd and the unethical operations of the business. They are also under the investigation of the local council.
Comparing alternatives and values
This is the best course of the action that consists of the different norms, principles and the values that is required in order to inform the Morgan fertilizers about the Dumparound that has a terrific bad reputation about the local council. There is also a requirement to avoid the contracts that they will not pay a heed to the different heavy fines for the irresponsible dumping of the different toxic waste management that may not harm the environment. This can be considered as the only option that will not help to comprise on the objectivity and the integrity of the Jacqui that is an integral part of the professional codes of the ethics (Furnham and Gunter 2015)).
If in any case the first option was implemented, that includes the bad history of the Dumparound Ltd that will eventually be unnoticed to the contracts with the Morgan fertilizers and the Dumparound Ltd (Cannon and Bedard 2016). In any case, afterwards it is seen that a high probability can be found of the different Dumparound Ltd that may be accused of the various irresponsible toxic wastes that has a dumping as well will pay a heavy lot of fine to the local council. The reputation of the Morgan fertilizers that has been affected will eventually affects that will possibly lead in a state of the financial loss statement for them. with an addition to it, there is a requirement for the auditors and the relationship of the client to weaken nad make the Morgan fertilizers blame the MYH (Gaynor et al. 2015). They would eventually blame them for not informing them before hand and before the signing of the contracts. There is a need to lead with a negative impact to the MYH and with their reputation as well (Arens et al. 2016).
Make your decision
There is a need to seek the duty of the different auditors to comply the principles and the various values. The second option is to make the best for their implementation. The Morgan fertilizers needs to be informed around the Dumparound that has an unethical operation of the business and make a contract that needs to be cancelled (Abernathy et al. 2014).
There is a need to set a few sets of the accounts tthat is solely for the purpose of the client so that the auditor own its own client and their duty care in every tort and possible term of the contract. There is a requirement of the different possibility of the parties so that there is a need to reply on the various audited accounts. The major topic that needs to be discussed in the various financial and the auditors world that ownes itself as an auditor that may be whether there is a need to own the care duty in any party of the client (Zadek, Evans and Pruzan 2013).
There is a requirement for the three tests that will help in the case whether the auditor is liable or not in case of the third party. There is a need to apply for the three different tests:
- Early test: special relationship
- Reasonable foreseeability
- Current proximity
There is a need to make the duty owned by the third party of the auditors that needs to show the accounts level that will make the client go a long way in order to make provocations of the different actions (Knechel and Salterio 2016). In the Hedley Byrne and the Co Ltd v Heller & partners Ltd (1964), that is considered as a firm for advertising the different agents. It can be seen that the House of the Lords that is regarded as the one who upholds the judgment of the Denning Lj in Candler v Crane, Christmas & Co (Zadek, Evans and Pruzan, 2013).
There is a need to examine the various aspects of the report that is meant to be introduced by the help of the third party (Yang and Jia 2013). The fidelity is considered as a not performing part. There is a need to judge the stated purpose of the various publishing accounts that is required to inform the various investors to make the performance of the company from the outside investors like the Caparo relationship of which the Dickman is not liable (Gaynor et al. 2014).
This is considered as a duty that helps in owning the various specifications that can be used as a third party to make them the auditor that is not aware of the different considerations that needs to be in a group of people (Jia 2016). The reason to make that Macfarlane no liable to the Scott group is the knowledge of the auditors that needs to be taken over by the John Duthie Holdings. There is no scope of the legal duty that can be owed by the auditors to the Scott Group.
There is a need to make the case of the Scott Group vs. Macfarlanecan that needs to be applied in case of the Oasis that must be bought against the MYH. The Scott group has the assets of the Company that has been considered overstated by the NZ $38,000. The Scott group has failed the case of the auditors in order to win the case. Therefore, there is a need to make a negligence case against the MYH (Hayes, Wallage and Gortemaker 2012).
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